Vietnamese and Australian experts gathered at an international workshop in Hanoi on March 13 to share experience in building mining policies.

The event was jointly held by the Ministry of Natural Resources and Environment (MoNRE), the National Assembly’s Committee for Science, Technology and Environment and the Australian Embassy in Hanoi.

Highlighting the significance of the geology and minerals to each country’s socio-economic development, Vice Chairman of the NA’s Committee for Science, Technology and Environment Nguyen Tuan Anh said that building and completing a legal corridor for the resources are an important mission, which should be made based on practices and international experience to ensure the effective and sustainable use.  

The experience shared at the workshop was expected to help Vietnam complete its Draft Law on Geology and Minerals which will be submitted to the NA for consideration in the coming time, he added.

Australian Ambassador Andrew Goledzinowski said that since the two countries set up their diplomatic ties more than 50 years ago, Australia has supported Vietnam in various areas, including building institutions and policies on geology and minerals. Specifically, Australia helped Vietnam build a draft law on minerals in 1996 that has been applied in Vietnam for tens of years.

As mining enterprises have to tackle major risks associated with legal procedures, Vietnam should work towards a more competitive environment, particularly in terms of taxes and costs, to lure more investment, he stressed.

He added that Australia will continue assistance to Vietnam to improve natural resources management capacity as well as complete institutions in the fields of natural resources, environment and climate change.

Difficulties and bottlenecks in mining investment procedures in Vietnam over the past time were on the table at the event. Experts also discussed issues related to state management of geology and mineral resources.

According to Deputy Director of the MoNRE’s Vietnam Minerals Department Mai The Toan, Vietnam has some 50 kinds of minerals, and 5,000 operating mines. The mining industry makes up of nearly 5% of the country’s GDP.

Highlights of the Draft Law on Geology and Minerals which comprises 12 chapters and 117 articles are the classification of minerals for management, reform of administrative procedures, using state budget to explore strategic and important minerals, enhanced management of sand and gravel in riverbed, lakebed and sea areas, among others./.

Viet Nam seeks for Japan’s funding for North-South high-speed railway project

Viet Nam hopes that Japan will participate in providing funding for Viet Nam to carry out the North-South high-speed railway project.
 
Minister of Finance Ho Duc Phoc has a working session with Japanese Finance Minister Shunichi Suzuki, Tokyo, Japan, March 11, 2024 - Photo: VNA
Vietnamese Minister of Finance Ho Duc Phoc made the above suggestion during his meeting with Japanese Finance Minister Shunichi Suzuki on March 11 as part of his working visit to Japan.

According to Ho, Viet Nam's public debt is currently about 37 percent of GDP, lower than the set target of 60 percent capped by the National Assembly.

This is an advantage for Viet Nam to attract capital from foreign countries to invest in infrastructure as well as socio-economic development, he noted.

The North-South high-speed railway project has an estimated investment of US$67 billion and will be implemented in 2027, he said, adding that Viet Nam expects to mobilize 30 percent of the investment from foreign capital, including from Japan.

For his part, Shunichi Suzuki hailed the Vietnamese Government's efforts in creating favorable conditions for Japanese businesses and banks to cooperate and invest in Viet Nam.

He also expressed his willingness to join the North-South High-Speed Railway project as well as other infrastructure projects that Viet Nam is set to carry out.

The two ministers expressed their satisfaction to see the increasingly strong development of the two countries' relations, especially the upgrade of the ties to the Viet Nam-Japan Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World last November.

They discussed the two countries' financial cooperation in several areas, such as taxes, customs, loans, aid, and use of official development assistance (ODA), while sharing experience and solutions to improve management capacity and professional operations of functional units.

In addition, the two ministers expressed mutual support in multilateral financial cooperation such as within the ASEAN 3 framework, focusing on areas such as the Chiang Mai Initiative Multilateralization (CMIM) and Disaster Risk Finance (DRF) to enhance regional financial stability and resilience.

Earlier, Ho visited the Japan Exchange Group (JPX), and worked with the President of the Japan Financial Services Agency (JFSA) and the President of the Japan International Cooperation Agency (JICA).

High-tech capital influx expected

More incentives for investors as part of a freshly enacted decree are expected to help draw more projects into high-tech parks, including in semiconductors.

On March 25, Decree No.10/2024/ND-CP on establishing and expanding high-tech parks will come into effect, deemed good news for investors and the management boards of the current high-tech parks.

One of the headline incentives is the decentralisation and authorisation of ministries, ministerial-level agencies, and municipal and provincial people’s committees to the management board of the high-tech park to implement one-stop shop administrative mechanisms to support investors.

“One of the new points of the decree is the promotion of autonomy for high-tech parks in handling administrative procedures. This is the government’s policy in removing bottlenecks and attracting high-tech projects, especially projects from foreign-invested enterprises and research and development (R&D) activities,” Deputy Minister of Science and Technology Bui The Duy said at a conference on the issue in Ho Chi Minh City on February 27.

“The characteristic of high-tech investors is that they just focus on technology and are confused with the process of completing the administrative procedures. Therefore, implementing a one-stop shop mechanism, where all procedures are carried out at one focal point, is an important factor impacting their decision,” Duy added.

The Ministry of Science and Technology (MoST) will continue to advise the government to propose decentralisation in the operation of high-tech parks. The decentralisation and authorisation for the management board to implement the one-stop shop is a highlight because it is the expectation of the management boards of high-tech parks.

The Management Authority of Saigon High-Tech Park had asked Ho Chi Minh City People’s Committee and the MoST several times to re-establish the one-stop shop mechanism as many foreign investors became frustrated and could not wait any longer because administrative procedures were taking too long.

Along with the authorisation mechanism, the decree regulates that high-tech parks will be eligible for incentives equivalent to those applied to localities with extremely difficult socioeconomic conditions.

In addition, tenants will also enjoy the incentives of corporate income tax, export-import taxes, land fees and credit based on the established regulations. Specifically, tenants in high-tech parks will enjoy a corporate income tax of 10 per cent per year for 15 years. Exemption will be given for the first four years and a reduction of 50 per cent for nine consecutive years.

Projects in high-tech parks will also be prioritised for participation in support programmes on training and recruitment while receiving support for R&D, tech transfer, high-tech agriculture, and innovation.

According to experts, these incentives will pave the way to pull in projects having high-tech content, such as semiconductors.

“Foreign investment inflows in Vietnam also appear a new trend, which focuses on the fields using green and clean technology with high technology content such as chip and semiconductor production,” said Le Huu Quang Huy, a member of the interim executive committee of the Financial Association of Industrial Parks.

“This trend comes from the matching supply and demand. The processing and manufacturing industries are the strengths of many groups around the globe, and whatever their strength, they will focus on investing to seek profits,” Huy added.

Meanwhile, Vietnam is pushing many policies to draw in high-quality capital inflow to realise the goal of industrialisation, and the promulgating incentives for funding in high-tech parks is an example of incentive policies.

“We have worked with many foreign investors in the high-tech sector. They include one kitchen equipment manufacturer from Taiwan and one from South Korea, which have experience in producing semiconductors, chips, and batteries to export to the United States and Germany for Tesla and Hyundai,” Huy said. “We saw that they trust the business environment of Vietnam and want to have long-term operation here. It is a good opportunity.”

According to the Foreign Investment Agency under the Ministry of Planning and Investment, as of February 20, the total newly registered capital, additional capital, capital contributions, and share purchases by foreign investors, surged 38.6 per cent compared to the same period in 2023.

Last year, Samsung poured another $1.2 billion into Vietnam, raising its investment to $22.4 billion. The group aims to pump an additional $1 billion per year into the country.

In addition, Qualcomm is planning to open a R&D centre in the central city of Danang, and has asked the city to support the group in opening an AI research lab at Danang Software Park 2.

Trade event hosts nearly 100 meetings between Việt Nam and Korean businesses

Vietnamese importers engaged in nearly 100 one-on-one business meetings with enterprises from Gyeongbuk and Chungbuk provinces of the Republic of Korea (RoK) in a trade exchange programme held in Hà Nội on Wednesday. This event marked the inaugural Korea-Việt Nam trade event of 2024, facilitated by the Korea Trade-Investment Promotion Agency in Hanoi (KOTRA Hanoi).

Seventeen Korean exporters showcased a range of high-quality products including cosmetics, fresh fruits, fruit juice, functional foods, medicines, dental equipment and electronics. Several memoranda of understanding and potential import contracts were inked between companies from both nations. Participants expressed that the event provided a crucial platform for forging new collaborations in the post-COVID-19 recovery phase.

Byunghak Lee, Chief Technology Officer at Gyeongbuk-based B2Lab Co Ltd, expressed his aspirations, stating: "We aim to penetrate the Southeast Asian market, with Việt Nam being our primary target. Our dental implants cater to the dental industry. Our priority is to gauge the reception of Vietnamese consumers towards our product. Securing contracts here would be a significant achievement for us."

On the other hand, Paco Jung, Overseas Sales Director of Chungbuk-based Wellfarm Co Ltd, emphasised their interest in establishing partnerships to gain insights into the Vietnamese market, paving the way for long-term collaboration strategies.

Drawing on years of experience in importing and trading Korean products, Nguyễn Anh Tuấn, Deputy Director of Thiên Linh FSC Technical Services and Trading Co Ltd, expressed a desire to connect with more Korean manufacturers specialising in products derived from red ginseng and deer velvet.

Trần Thị Hải Yến, head of the KOTRA Hanoi Office, disclosed plans for nearly 50 trade delegations and exhibitions scheduled for the year ahead. 

Vietnam’s super-rich among top 5 fastest growing in Asia-Pacific

Vietnam is projected to have nearly 1,000 super-rich individuals by 2028, ranking fifth in terms of growth rate in the Asia-Pacific region.

A Wealth Report released by the real estate consultancy firm Knight Frank (UK) reveals that the number of ultra-wealthy individuals in Vietnam was estimated at around 752 last year, a 2.4% increase compared to 2022. This growth rate is lower than neighboring countries such as Malaysia (4.3%), Indonesia (4.2%), and Singapore (4%), but three times higher than Thailand (0.8%).

According to the firm's definition, ultra-high net worth individuals have worth (excluding debts) of $30 million or more, including real estate they reside in.

Knight Frank identifies the number of ultra-rich individuals in countries using the "Wealth Sizing Model" developed and refined by the company over the past decade. This method combines a wealth of data resources collected by the company and machine learning technology, structured to take into account influencing factors such as geopolitical circumstances that may affect fundamental economic relationships.

The company notes that its model is dynamic, so figures in the latest report may vary and may not match those in previous publications. Knight Frank forecasts that by 2028, Vietnam's ultra-rich population will reach 978, up by 30% from the previous year, placing the country among the top five fastest growing in the Asia-Pacific region, ahead of South Korea, Hong Kong, and Singapore.

Alongside the growth in the number of high-net-worth individuals, between 2018 and  2022, Vietnam saw annual growth rates in luxury goods imports of 8% for jewelry, 26% for cars, 6% for wine, and 8% for watches, according to the Knight Frank Luxury Investment Index (KFLII).

Last year, the global ultra-rich population grew by 4.2% to  626,619, up from 601,300 in 2022. Growth was led by North America (7.2%) and the Middle East (6.2%), while Latin America was the only region seen a decline. By country, Turkey and the US led the growth, with increases of 10% and 8%, respectively.

Following a decline in 2022, the global high-net-worth population increased last year due to improving economies and active financial investing. In the first half of 2023, interest rates continued to rise, but stocks surged due to excitement over artificial intelligence.

In the latter half of the year, inflation eased, and expectations of early interest rate cuts further fuelled the stock market. Other sectors also yielded positive returns, with gold rising by 15% and Bitcoin by 155%, reversing much of the losses that investors endured in 2022.

Knight Frank predicts that Asia will lead in ultra-rich population growth by 2028, with a 38.3% year-on-year increase. The continent had 165,442 ultra-rich individuals last year and the number is projected to reach 228,849 in the next five years.

As lifestyles become more affluent, Kevin Coppel, CEO of Knight Frank Asia-Pacific, notes that the wealthy and ultra-wealthy in Asia continue to show particular interest in luxury investments.

Coppel noted that across the continent, tycoons and magnates consistently prioritize luxury purchases to diversify their investment portfolios and capitalize on the significant profit potential these asset classes offer.

Hanoi expands safe supply chains
 
Cooperation between Hanoi and other localities under the Coordinated Program to Ensure Food Safety has made an important contribution to securing sources of supply, especially during holidays.

 Hanoi and 43 other provinces and cities across the country have so far worked together to build 997 safe supply chains of agricultural products, according to Ta Van Tuong, Deputy Director of the city's Department of Agriculture and Rural Development.

"Out of a total of 997 chains, Hanoi has developed 159, many of which are self-contained from production to distribution and consumption, so they have created strong brands in the domestic and international markets, such as Van Duc safe vegetable chain, Hoang Long Cooperative meat chain, Dien grapefruit fruit chain, Dai Thanh longan, Bao Minh rice, and others," Tuong said.

Hanoi is a potential consumer market for agricultural and food products thanks to its large population, and the demand for safe food is huge. Some cities and provinces have developed many chains to supply Hanoi, such as Son La with 144 chains, Hoa Binh with 65, Lao Cai with 53, Hung Yen with 41, Dong Thap with 28, Lam Dong with 15, and Tien Giang with 20.

"Strict quality control of agricultural and food products in the market is always the focus of provinces and cities to further strengthen coordination in building safer food supply chains," Tuong told The Hanoi Times.

Cooperation between Hanoi and other localities under the Coordinated Program to Ensure Food Safety has made an important contribution to securing sources of supply, especially during holidays.

According to Nguyen Nam Phong, director of the Vinh Kim Cooperative in Tien Giang Province, in an effort to expand the market for Tien Giang fruit products, the cooperative opened a branch in the capital two years ago.

"Currently, Vinh Kim Cooperative sells about 50-60 tons of fruit per year in the Hanoi market through supermarkets, convenience stores, and agricultural product processing units and enterprises," Phong told the Vietnamese Government Portal (VGP).

Nguyen Minh Hieu, director of Tien Giang's Department of Agro-Forestry-Fisheries Quality Management, said the province and Hanoi have also set up four chains of agricultural products, including dragon fruit, mango, durian, and star apple. "The supply to the capital's market is estimated at 1,200 tons per month," Hieu said.

Cam Thi Phong, deputy director of Son La's Department of Agriculture and Rural Development, said the province currently has 242 supply chains of safe agricultural, forestry and fishery products, 84 of which have provided about 7,200 tons of vegetables and fruits and 290 tons of processed food for Hanoi's consumers.

"Coordination between the province and Hanoi has helped Son La's cooperatives find a stable consumer market and adjust their production plans to meet market demand," Phong said.

Hoang Van Vuong, a representative of the Trai Son Organic Agricultural Cooperative in the northern province of Hoa Binh, told The Hanoi Times that the cooperative has signed a contract to supply vegetables to supermarket chains Winmart, BigC and clean vegetable stores in Hanoi. On average, the cooperative harvests and sells 1-2 quintals of safe vegetables per day.

Deputy Director of the Municipal Department of Agriculture and Rural Development Ta Van Tuong said that in 2023, the department tested nearly 200 samples of agricultural, forestry and fishery products sold in Hanoi from other provinces and cities. Of the total, more than 180 samples met standards, and nine were found to violate food safety standards. For the substandard samples, the department immediately notified provinces and cities to trace the origin and address violations.

"We will step up inspections and take samples for testing to monitor product quality, while promoting the use of information technology in traceability and QR codes to make product information transparent in the market," Tuong emphasized.

MARD seeks to disburse public investment

The Ministry of Agriculture and Rural Development (MARD) is eager to implement further solutions that can accelerate the disbursement of public investment capital.

In the first two months of this year, disbursement in the agricultural sector hit $30.15 million, equal to just over 7 per cent of the target for the year.

Nguyen Hai Thanh, director of the Department of Construction Management under the MARD, told VIR that current issues in the agricultural sector have been divided into those related to policy, compensation, and site clearance to address them more easily.

“We have developed disbursement plans for small and medium-sized projects in each group, and have particular plans for each large-scale project to simplify disbursement for the whole year,” Thanh said.

The MARD has been allocated $419 million of public capital for 2024, including $355 million from the state budget and $64 million from official development assistance (ODA), for nearly 290 projects or component schemes.

"Almost all of these projects are in irrigation and infrastructure," said Thanh. “We will regularly review the implementation of projects using public capital and offer adjustment capital plans for long-delayed projects.”

In particular, irrigation infrastructure is deemed one of the key pillars of national strategy. Investment in irrigation infrastructure and disaster prevention accounts for a large proportion and must contend with climate change adaptation. In addition, spending on emission reduction activities is currently only at 3-5 per cent, mainly in forestry and ODA-funded projects in cultivation and animal husbandry.

Vietnam has built many multipurpose irrigation projects such as those in Lang Son, Nghe An, Ha Tinh, and Bac Lieu provinces. In addition, the Cai Lon-Cai Be irrigation system is considered the largest 'super sewer' in Vietnam. These projects have played a crucial role in controlling water systems for the agriculture sector.

According to statistics published by the MARD, the irrigation infrastructure system has provided an additional 6.5 billion cubic metres of water for agricultural each year. In addition, the active irrigation area has also increased by one million hectares compared to 20 years ago.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said, "We are facing pressure to use the total investment capital allocated for the 2021-2025 period. This year is pivotal for implementing the disbursement of public funds."

The allocated capital for the agricultural sector has increased by 30 per cent compared to the 2016-2020 period, while capital allocated from ODA loans has also doubled. The MARD must disburse $844 million, which means that the total for 2023-2025 is estimated at $2.53 billion.

“To meet these targets, we need to thoroughly resolve the delays in implementation. It takes a lot of time to implement surveys and complete procedures correctly, taking an average of five months. In addition, there are delays related to capital allocation and fluctuations in construction material prices, as well as the weather,” Tien said.

Proposal for competitive wholesale electricity market formulated

The Electricity Regulatory Authority (under the Industry and Trade Ministry) has completed the draft Circular for the operation of the competitive wholesale electricity market. Comments from the public are welcomed from March 13.

The draft Circular applies to organizations participating in the electricity wholesale market, including wholesalers, energy generator businesses, electricity system and market operators, electricity transmission units.

This draft Circular stipulates that as to thermal power, the ceiling price is determined each year and adjusted each month depending on the heat loss rate of generators, the performance degradation coefficient over the operating time of generators, input material prices, and variable prices according to energy purchase contracts. The floor price is VND1/kWh.

Regarding hydroelectric power, the floor price is VND0/kWh, while the ceiling one for every generator group is calculated each week by the operating unit of the electricity system and market. The announced price must go along with input parameters for calculation like water value, the variable cost of the most expensive DO oil thermal power unit in the power system, the average of all ceiling prices from all thermal power generator groups joining in the market that month.

In addition, hydroelectric power plants directly taking part in the market are responsible for offering prices in compliance with regulations of floor and ceiling prices for electricity. They must satisfy the water use demands of local people in the downstream areas as well as other hydrological constraints.

The draft Circular is expected to be released on June 30 and come into effect from July 15.

In related news, on March 13 in Con Dao District, the delegation of the Industry and Trade Ministry had a working session with the People’s Committee of Ba Ria – Vung Tau Province about the grid power supply project in this district.

Vietnam Electricity (EVN) proposed that the Government Office support the Prime Minister in making a decision to adjust investment policies for this project, and that the Natural Resources and Environment Ministry consider the appraisal results of the Environmental Impact Assessment Report.

EVN also asked for approval from the People’s Committee of Ba Ria – Vung Tau Province for the land use plan in 2024 of Con Dao District for the project to be launched as soon as possible.

In his conclusion speech, Deputy Minister Nguyen Sinh Nhat Tan of the Industry and Trade voiced that the province urgently addresses current issues so that the assessment report can be submitted to the Prime Minister at the earliest convenience. Unless the project can start this April, it will drag on for 1-2 years, which will affect the project capital.

Foreign capital preferred by local businesses – economist

There is a growing tendency among Vietnamese businesses to seek funding from external sources, as they view it as a more financially viable option than domestic avenues, said economist Pham Chi Lan.

Speaking at a conference titled “Consumer Goods and Distribution Industry: M&A Trends and Sustainable Investment Strategies for Vietnamese Enterprises,” organized on March 12 in HCMC by the Association of Vietnamese Enterprises with High-Quality Products and the Leading Business Club, Lan emphasized the need for many established Vietnamese businesses to elevate their development to stay competitive and ensure sustainability.

Acknowledging the crucial role of capital in this endeavor, Lan highlighted the perception among businesses that domestic funding sources are relatively expensive, prompting them to explore opportunities abroad.

“Despite the availability of capital within Vietnam, accessing and allocating funds to businesses remains a significant challenge,” Lan sad.

Lan’s observations coincide with a concerning trend of Vietnamese businesses ceasing operations due to economic challenges.

“If these enterprises could secure timely access to loans or investments, it would significantly improve their ability to weather tough times,” she added.

As a majority of enterprises in Vietnam are of small and micro size, Lan stressed, policies should be adopted to help them access capital sources.

The HCMC Union of Business Associations proposed measures to aid the recovery and development of enterprises. However, despite the availability of bank loans, small and medium-sized enterprises often have difficulty meeting banks’ requirements for loans.

FPT has new deputy CEO

FPT Corporation (HOSE: FPT) has announced the appointment of Pham Minh Tuan as deputy chief executive officer (CEO), with effect from today, March 13.

Tuan, who is currently CEO of FPT Software, will assume additional responsibilities in his new role.

In his expanded role, Tuan will oversee global business operations across FPT’s subsidiaries, focusing on strategic areas such as cloud services, artificial intelligence (AI), semiconductors, automotive software technology, infrastructure management (IMS), and green transformation.

During his tenure as CEO of FPT Software, Tuan made certain milestones, especially US$1 billion in revenue from international markets in 2023.

Tuan has held various senior positions in the FPT ecosystem.

FPT Corporation last year made VND52.6 trillion in revenue, up by 19.6% year-on-year, and VND9.2 trillion in pre-tax profit, up by 20.1%. Its profit after tax edged up by 21.8% year-on-year to VND6.5 trillion.

HCMC housing market sees limited supply, rising costs

The real estate market in HCMC and neighboring provinces is seeing a scarcity of new residential block development projects, coupled with increasing costs, according to a January-February report by DKRA Group.

Data showed that only six projects with a total of 440 units were opened for sale during this period, a 34% year-on-year decline.

In the first two months of the year, housing sales in HCMC, Ba Ria-Vung Tau, Dong Nai, and Long An provinces totaled only 247 units, or 56% of the available supply. Class B apartments accounted for the majority of both the supply and new consumption, at 76% and 93%, respectively.

In HCMC, selling prices ranged from VND52.5 million to VND82 million per square meter. Although prices remained relatively stable, projects with complete legal status, fast construction, and timely handovers saw 3-6% price spikes.

In 2023, a report by Savills said that the supply of apartments in HCMC dropped to a decade low, with only 10,700 units put up for sale.

The real estate services provider said apartments priced between VND2 billion and VND5 billion per unit would become scarce in the coming years, while homes priced at between VND5 billion and VND10 billion would dominate the market.

The HCMC Real Estate Association (HoREA) said a healthy and sustainable housing market was needed.

The current housing market in HCMC is not sustainable as 71.5% of apartments on the market are in the high-end segment.

Auto sales suffer their sharpest drop in five years

According to a recent report from the Vietnam Automobile Manufacturers’ Association (VAMA), recorded sales of vehicles for February were down 40 per cent from the previous month and 50 per cent on-year, representing the largest decline in almost five years.
 
Data by VAMA shows that sales of passenger cars were hit the hardest, down 45 per cent from January. Sales of commercial vehicles were down 21 per cent. Meanwhile, special-purpose vehicles declined by 48 per cent.

Automakers slowed the downward momentum of completely knocked-down (CKD) sales thanks to a more proactive supply chain and the benefit of demand stimulation policies. Sales of CKD vehicles were down 32 per cent in February from the previous month. Meanwhile, completely built vehicles saw a drop of 47 per cent for the same period.

According to industry experts, consumers have tightened their budgets amid the current economic difficulties, with many purchasing cars before a policy that halved registration fees expired in December.

Many car manufacturers have launched promotional campaigns offering discounts since the beginning of the year with the likes of Ford, Toyota, Mitsubishi, Hyundai, Honda, and VinFast applying attractive incentives to pull in buyers.

Industry experts expect Vietnam's vehicle market to gradually improve in the following months and see steady growth in the last six months of the year.

Businesses take easy EPR compliance route

Many businesses are wrestling over the decision to pay emissions fees or organise recycling themselves, even though extended producer responsibility regulations have already been in effect for a couple of months.

Issues related to regulations on recycling costs and supporting manufacturers and exporters in implementing extended producer responsibility (EPR) were discussed at a meeting between Deputy Prime Minister Tran Hong Ha and representatives of ministries and business associations on March 1.

Ha said, “It is necessary to encourage businesses to carry out their own recycling responsibilities or sign contracts with qualified recycling businesses according to the provisions of the Law on Environmental Protection. If an enterprise chooses to contribute recycling costs to the state fund, the contribution level should be based on survey data from qualified recycling enterprises, and priority will be given to enterprises with modern technology.”

The 2020 law stipulates that manufacturers must be responsible for recycling their products and packaging after being discarded by consumers, or contributing to an environmental protection fund to receive recycling support. Recycling is carried out on a voluntary basis, in which businesses can do it themselves or hire a reputable recycling unit.

But since January 1, regulations have been tightened. Manufacturers and importers of batteries, lubricants, tyres, and packaging will become the first to implement EPR regulations. The minimum recycling rates are 5 per cent of the products sold or imported for tyres, 8-12 per cent for batteries, and 10-22 per cent for packaging.

According to a report from the Ministry of Natural Resources and Environment (MoNRE), after two months of implementation, businesses often choose to make financial contributions to the environmental protection fund instead of recycling themselves, because they cannot fully comply with EPR regulations.

A representative of a business with nearly 50 years of experience in the dairy industry said that it accepted to contribute more than $415,000 per year to the fund because they have not found another solution to thoroughly collect and recycle packaging.

“Milk cartons are considered difficult to recycle because they are often made up of layers of paper, aluminium, and plastic. To be recycled, we have to go through many stages and apply modern lines and machinery,” the representative said.

Besides that, the representative said that the biggest problem was in the collection stage, as after being exposed to water, paper milk cartons will easily become brittle and damaged, making them more difficult to collect than plastic bottles and jars.

Currently, the company has also researched plans to invest in collection machines at points of sale. Customers who return the packaging after use will be given a QR code to accumulate points, and these points will be deducted from the product purchase price in the future.

“This solution is similar to the packaging deposit-return machine model that is widely applied in other countries. However, the investment cost of only one machine is over $80,000, and we need many machines for it to be effective,” the representative added.

According to the MoNRE, Vietnam is among the top 20 countries with the largest amount of waste. Counting milk cartons alone, each year Vietnam releases 10-15 billion cartons into the environment, but the recycling rate is less than 5 per cent.

According to Nestlé Vietnam, new EPR regulations do not allow businesses to combine self-recycling and payment of recycling fees. Therefore, there are businesses that, despite recycling their packaging according to regulations, still have to pay a fee because a small percentage cannot be recycled.

According to senior corporate affairs manager of Nestlé Vietnam Le Thi Hoai Thuong, some EPR implementation plans have been applied by businesses for many years, including transparent declarations of the volume of packaging to be recycled.

“We’ve continuously improved packaging design to reduce and eliminate unnecessary materials, reduce the use of virgin plastic, and replace it with environmentally friendly materials. These activities helped us reduce nearly 2,400 tonnes of plastic packaging in the 2021-2022 period,” Thuong said. “We also work with recyclers to come up with self-recycling plans in Vietnam.”

Nguyen Huu Tien, general director of Hanoi Urban Environment, said that recycling activities in Vietnam mainly relied on informal forces such as scrap collectors, scrap dealers, and recycling craft villages.

“It is required to have a standard process from collection to recycling. We seriously lack recycling infrastructure that meets EPR standards, especially factories capable of recycling all types of waste,” Tien emphasised.

Nguyen Hong Quan, director at the Institute for Circular Economy Development, said that many businesses were confused when estimating and making financial plans for 2024 because the cost of recycling was large and affected business operations.

“Even though the law stipulates two options to demonstrate producer responsibility, businesses still lean towards the simplest option, which is paying money to the fund as a tax,” he said.

Dr. Nguyen Trung Thang, deputy director of the Institute of Strategy and Policy on Natural Resources and Environment under the MoNRE, said the positive impact of mandatory implementation of EPR responsibilities would cause many businesses to have breakthroughs in product design such as being easier to recycle, more environmentally friendly, and even creating products that do not need to be recycled.

“This will reduce the amount of waste released into the environment, stop overexploitation of resources, promote environmental protection, and develop a green economy,” he said. “Vietnam still does not have a truly strong official recycling industry, so initial implementation will face many difficulties. However, through policy implementation, we will form a formal recycling industry, gradually growing as expected.”

Work accelerated on Tan Son Nhat terminal to complete by April next year

The construction of the T3 passenger terminal at Tan Son Nhat International Airport in Ho Chi Minh City is set to finish two months ahead of schedule, aiming to be completed in time for the 50th anniversary of the Liberation of the South and the National Reunification (April 30, 1975 – 2025).

According to Le Khac Hong, the head of the project management board, in order to shorten the schedule and bring the project to completion by April 30 next year, the investor and contractors are determined to intensify manpower, machinery, equipment, and construction efforts.

Currently, the consortium of contractors has mobilised over 400 motorised vehicles and nearly 2,000 engineers and workers, with 80% of the workload finished so far. The construction of various components is underway following the established schedule.

Covering a total construction area of 112,500 sq. m., the terminal is designed to have an annual capacity of 20 million passengers, with a scale of one basement floor and four above-ground ones. It is expected to help double Tan Son Nhat’s operational capacity, thus reducing traffic congestion both inside and outside the currently overloaded airport.

Northern power corp’s output up 12.02%

The Electricity of Vietnam (EVN)’s Northern Power Corporation (EVNNPC) has reported that its commercial power output picked up 12.02% year-on-year to 13.9 billion kWh in the first two months of 2024. 

Of the total amount, 61.98% was supplied for the construction industry, up 14.15% percent against the same time last year, while 30.91% and 2.75%, were provided for consumption-management, and trade-service, rising 7.97% and 15.12%, respectively.

The proportion of customers who paid the power bills without using cash by the end of February reached 87.52%, with revenue through non-cash payment channels reaching 96.94%. Additionally, 100% procedures for electric service are provided online at level 4.

The corporation has identified its most important political task as ensuring safe and stable electricity supply in 2024, especially in summer.

The corporation, along with its member units within the Electricity of Vietnam (EVN), will jointly implement activities in March to respond to the Earth Hour campaign in 2024.

Notably, a “lights off” event for one hour in response to the Earth Hour 2024 will take place from 8:30 pm to 9:30 pm on March 23.

VinFast to join in Vancouver International Auto Show 2024

VinFast Auto announced on March 14 that it will participate in the Vancouver International Auto Show (VIAS) 2024 in Canada from March 19-24.

In its first appearance at VIAS, the Vietnamese electric automaker will showcase a diverse range of electric vehicles, further marking its position in the green mobility sector and signifying its commitment to bringing its comprehensive EV ecosystem closer to global consumers.

It will introduce VF 6, VF 7, VF 8, and VF 9 models which cater to diverse customer segments and offer modern technological features alongside advanced ADAS driver assistance system, ensuring an intelligent and safe driving experience.

Designed by Torino Design, the VF 6 and VF 7 feature sophisticated style and lines with a contemporary flair. The VF 6, with its elegant and modern design, caters to young and dynamic consumers and families seeking a green lifestyle while the VF 7's sporty and personalised style make it ideal for young, successful individuals who value individuality and expression.

VinFast's VF 8 and VF 9 showcase the brand's commitment to premium design. Crafted by Pininfarina, both models exude a sense of luxury and glamour, while delivering intelligent and safe driving experiences.

Customers visiting the VinFast booth can register for a test drive of the VF 8.

After a four-year hiatus due to the COVID-19 pandemic, VIAS is back for 2024 with hundreds of vehicle models from over 30 of the world's leading automotive brands.

List of high-quality Vietnamese product businesses announced

The Business Association of High-Quality Vietnamese Products on March 14 held a ceremony in HCM City to announce and award certificates to 529 high-quality Vietnamese businesses in 2024.

Among the businesses, 32 have been on the list for 28 consecutive years since the High-Quality Vietnamese Goods Programme was launched, while 16 have entered the list for the first time.

Outstanding names in the list include Asia Bakery-Confectionary Co. Ltd., Tho Phat Food Processing One Member Company Limited, Ha Long Canned Food JSC, VISSAN JSC, Cholimex Food JSC, Vietnam Dairy Products JSC (Vinamilk), Van Thanh Mattress Company Ltd., An Phuoc Garment Embroidery Shoes Co. Ltd, My Hao Chemical Cosmetics JSC, and Saigon Cosmetics JSC.

The vote for high-quality Vietnamese products this year received feedback from over 70,000 consumers across the country.

According to Vu Kim Hanh, Chairwoman of the association, it will focus on supporting businesses in promoting a green economy and building new green brands and standards this year, and continue to help connect businesses with international markets, take advantage of domestic market opportunities, promote training in production and business skills, and popularise policy mechanisms to businesses.

Attending the event, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai highly valued those businesses, adding that for the last 28 years, the programme has helped improve the quality of Vietnamese goods and national competitiveness in both domestic and international markets.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes